In the graph below,which depicts the relationship between units produced and unit cost,the dotted line depicts which type of cost per unit?
A) Variable cost
B) Fixed cost
C) Mixed cost
D) None of these

Question

In the graph below,which depicts the relationship between units produced and unit cost,the dotted line depicts which type of cost per unit? 
A) Variable cost 
B) Fixed cost 
C) Mixed cost 
D) None of these

Quizplus · Accepted Answer

Since the per unit cost line is horizontal,the cost per unit is constant.A variable cost per unit remains constant regardless of volume changes.As such,this depicts a variable cost.

In the Graph Below,which Depicts the Relationship Between Units Produced